The present invention comprises a new and distinct variety of Illicium, hereinafter referred to by the cultivar name ‘NCIH2’. ‘NCIH2’ was selected from a population of seedlings grown from an open-pollinated F1 hybrid of Illicium mexicanum x Illicium floridanum (2014-318, unpatented). The first asexual propagation of ‘NCIH2’ was carried out in July 2007 by rooting stem cuttings in Mills River, N.C. and has been asexually reproduced repeatedly by vegetative cuttings over a 9-year period. ‘NCIH2’ roots readily from softwood cuttings treated with a basal dip of 5,000-10,000 ppm indole butyric acid (potassium salt) in water. Time to rooting for semi-hardwood cuttings is approximately 6 weeks at about 30° C. has been found to retain its distinctive characteristics through successive asexual propagations.